DTN Early Word Grains 12/13 05:59

DTN Early Word Grains 12/13 05:59 Grains Rally as Trade Truce Nears March corn is up 5 cents per bushel, January soybeans are up 12 1/2 cents, and March KC wheat is up 5 cents. By Tregg Cronin DTN Contributing Analyst 6:00 a.m. CME Globex: March corn is up 5 cents per bushel, January soybeans are up 12 1/2 cents, and March KC wheat is up 5 cents. CME Globex Recap: Solid gains in equity markets around the globe overnight as the U.S. and China appear closer to at least a partial trade deal than at any other time in the last 18-months. Details began emerging Thursday afternoon that President Trump had signed off on a partial deal, although traders remain a bit nervous considering no official statement has been made by either Washington or Beijing. China has been especially quiet, neither confirming nor denying anything, although as long as additional tariffs are not enacted Sunday morning, it can viewed as a victory. Also noteworthy was the Tory victory in the U.K. election which helped propel the British Pound over 2.0% higher Friday morning. The sterling strength helped push the U.S. Dollar Index to multi-month lows, supporting commodity futures. Ag markets are sharply higher overnight in a relief rally after months of tenuous negotiations. The response has been solid in corn and soybeans, although how far prices are prepared to go before some tonnage is announced remains to be seen. If China commits to sizable purchases, it places even more focus on South American weather which still has a long way to go before boats can be loaded. OUTSIDE MARKETS: Previous closes on Thursday showed the Dow Jones Industrial Average up 220.75 at 28,132.05 and the S&P 500 up 26.94 at 3,141.63 while the 10-Year Treasury yield ended at 1.897%. Early Friday, the December DJIA futures are up 129 points. Asian markets are higher with Japan's Nikkei 225 up 598.29 (2.55%) and China's Shanghai Composite up 51.98 points (1.78%). European markets are higher with London's FTSE 100 up 135.86 points (1.85%), Germany's DAX up 164.39 points (1.24%) and France's CAC 40 up 71.06 points (1.21%). The December Euro is up 0.007 at 1.120 and the December U.S. dollar index is down 0.589 at 96.795. The March 30-Year T-Bond is down 1/32nds, while February gold is up $3.70 at $1,476.00 and January crude oil is up $0.78 at $59.96. Soybeans on China's Dalian Exchange were up 0.21% while soybean meal was down 1.21%.